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New Delaware Basin pipeline to be constructed by Magellan Midstream

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World Pipelines,

Magellan Midstream Partners, L.P. has announced it is commencing construction of a new Delaware Basin pipeline originating in Wink, Texas (USA) to handle crude oil and condensate.

Magellan will build an approximately 60 mile, 24 in. pipeline from Wink to Crane (Texas), which serves as an origin to its Longhorn pipeline. The new Wink pipeline will have an initial capacity of 250 000 bpd with the ability to expand to more than 600 000 bpd if warranted by industry demand. The project also includes construction of a new terminal at Wink which will offer broad inbound and outbound pipeline access to parties that connect to the facility.

Magellan currently expects the project to cost approximately US$150 million and to be operational in mid 2019, subject to receipt of any necessary permits and regulatory approvals.

"Magellan is known in the industry for its independent service provider business model and is ideally situated to meet growing industry demand for a crude oil and condensate pipeline system with access to customers originating from the Delaware Basin," said Michael Mears, CEO.

The new pipeline segment will offer direct service from the Delaware Basin to the Crane origin of Magellan's Longhorn pipeline, which provides crude oil and condensate transportation service to the Houston and Texas City refining complex and marine export facilities. In addition, this pipeline segment will be able to provide service from the Delaware Basin to the new crude oil and condensate line to Corpus Christi, Texas that has been proposed by Magellan as well as others in the industry.

Magellan plans to conduct an open season for commitments on the new pipeline system at a later time. However, construction of the new pipeline does not depend on the results of the open season. In addition, the partnership is assessing additional pipeline and terminal investments in West Texas to strengthen and enhance its overall crude oil service offerings.

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US pipeline news Crude oil pipeline news